SOP – Restaurant – Tips and Gratuities Distribution

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Tips and Gratuities Distribution in Restaurants and Hotels

Purpose of the Tips and Gratuities Distribution SOP: Tips distribution is to be done every month / bi-weekly by the Captain accompanied by any non-management Team Member to attest and witness the counting of tips. 

This procedure is a supplement to the Human Resources Department general tips policy and must be followed and adhered to by all concerned Team Members of the hotel.

1) Collecting and recording of Tips from outlets:

  • Collect the tip box from each outlet or department example Coffee Shop, IRD, Specialty restaurant, etc.
  •  Record the total amount of tips received on the register.
  •  Tips are counted every 15th and end of the month.
  •  Count the tips in the pantry or back office.
  •  If there is any foreign currency or chips on the Tips box then change them in exchange for cash.
  •  When a Team Member exchanges Foreign currency or tokens into cash at the Team Member’s Bank, the below information is required in the bank record:
  1. Name and ID number of the Team Member receiving the tips
  2.  Date/ Time
  3.  Amount of chips being cashed
  4.  Team Member’s signature
  5.  Bank Cashier’s signature
  • The captain must be assisted by one non-management team Member when counting the tips.
  •  No cash is to be taken out of the property without the approval of the Department Head.
  •  Both the Team Member receiving the tips and the Manager will sign in the logbook acknowledging receipt.

2) Captain/Assistant Manager prepares the monthly Tips Distribution Sheet.

3) Distribute the tips to all concerned Team Members.

  • Choose a quiet period (when restaurants are not busy) to distribute the tips.
  •  Normally 25% of the tips are shared with the kitchen staff and the rest with F&B staff.
  •  The tips will be shared equally by all full-time employees
  •  Management is ineligible to accept tips.
  •  Show the Tips Distribution Record to all Team Members.

4) Ask the staff to sign the Tips Distribution Sheet after receiving their share.

  • Staff should double-check the tips received before signing.
  •  Tips distribution must be witnessed by the Supervisor and/or Duty Manager and a Team Member.

Training Summary Questions for Tips and Gratuities Distribution:

Q1. What is the purpose of tip distribution?

Q2. What details are to be recorded when staff exchange foreign currency and chips?

Q3. Normal percentage of tips shared with kitchen staff?

Q4. Is manager-level staff eligible for tips?

Q5. What is the appropriate time to distribute tips?

SOP Number:  Food and Beverage Service SOP  – 36
Department: Food and Beverage Service – General
Date Issued: 07-Aug-2014
Time to Train: 30 Minutes
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